Ripple CEO Brad Garlinghouse announced on Tuesday that the company has obtained approval from the New York Department of Financial Services (NYDFS) to launch its stablecoin RLUSD. Despite on-chain data showing a large influx of supply pools into Binance, XRP still rose nearly 7% after the announcement.
RLUSD is set to go live following approval from New York regulators, with whale supply impacting Binance.
XRP whales and Binance sell-off prospects.
According to updates from CryptoQuant, whales have transferred over 2.66 billion XRP to Binance in the past 30 days. This is the highest level since April 2024. This on-chain trend indicates that XRP whales are active and interacting with Binance.
Since April 2022, the flow of whale tokens to Binance has gone through three different periods. The first period occurred around November 2022, when large buyers transferred 2.4 billion XRP to the trading platform. Moreover, by April 2024, this number rose to 2.8 billion XRP. The current 2.6 billion XRP highlights ongoing interest in the token.
There are different interpretations regarding the migration of XRP whales to Binance. According to analysis by JA Maartun, this trend usually indicates a change in activity. This could signal potential sell-offs, as top cryptocurrency exchanges have strong liquidity to buffer withdrawal demands.
However, Binance's overall reserves plummeted by 320 million XRP during the same period. This indicates that bulls have absorbed the potential sell-off activities from these whales.
The significant fluctuations in XRP's price over the past month (up or down) are primarily due to its strong market capitalization but thin liquidity. However, it must be acknowledged that the market liquidity of XRP has been balanced through Ripple's custodial interventions, which helps maintain the currency's price.
Using the RLUSD stablecoin to boost currency prices.
At the time of writing, the price of XRP is $2.3, down 6.95% in the last 24 hours. For the token, which fell to a low of $1.912 during the same time frame, this recovery is considered a positive signal for the token.
Previously, Ripple Labs announced that it had obtained approval for the New York RLUSD stablecoin, after which the market began to recover. The license issued by the New York Department of Financial Services (NYDFS) has paved the way for the stablecoin to launch on its pre-disclosed partner platforms.
As a token within the broader XRP ecosystem, the RLUSD stablecoin could benefit the continued recovery in token prices.
After a recent rise, XRP may retest the psychological level of $3.
According to data from Coinglass, XRP's liquidation amount exceeded $50 million in the past 24 hours, with liquidated long and short positions amounting to $31.2 million and $18.97 million, respectively.
After rebounding from a support level near $1.96, XRP has returned above the 23.6% Fibonacci retracement level. If XRP maintains its recent upward trend, it may reclaim the $2.58 level and retest the resistance level near the psychological level of $3, which had previously faced significant selling pressure.
XRP needs to maintain an upward trend above $1.96 to continue rising.
The Relative Strength Index (RSI) and the Momentum Oscillator are above neutral levels but are on a downward trend, indicating that bullish momentum is weakening.